The concept of bookkeeping in the cloud might sound unappealing at first with news sometimes saying the cloud isn’t entirely safe. That’s going to depend on the cloud service you use and whether 24/7 monitoring is part of the plan. When you can get a software taking your bookkeeping to the cloud, you can be sure security will be a top priority. But it goes beyond security in the reasons why cloud bookkeeping will likely be a top choice for both large and small businesses.
If you’ve relied on programs like Quickbooks for years or dealt with bookkeepers who didn’t give you enough transparency on your financial records, the cloud option may change things for you.
Bringing More Transparency to Bookkeeping
With programs like Xero, you have a bookkeeping program that allows you to store all your financial books in the cloud so they can be accessed anywhere you go. Many professional bookkeepers are starting to use Xero over Quickbooks because of the cloud convenience and how it can help them share financial information quickly with their clients. Particularly for business owners who have a hard time keeping up with their full financial picture, being able to access financial records when traveling can finally take financial management to a better place.
Financial Sharing with Business Partners
Going through the cloud can enable businesses to be more transparent with one another about everything. Xero notes their software’s multi-user capability and allowing business partners to confer with one another on important financial issues. In today’s more complicated business climate, not having everyone on the same financial page can end up bringing confusion and possible financial turmoil down the road.
You and your business associates can be on opposite sides of the globe and look in on every financial detail through your smartphones without necessarily having to meet in person.
Lowering Cost in Buying Software
Using programs like Xero, you don’t have to worry about buying any software and constantly upgrading every year. Everything in the cloud is going to be automatically upgraded for you and maintained so you’ll only be paying for the monthly service. This already saves on your budget that you’ll see reflected on the books by the end of each year. You’ll also be giving your in-house IT team less headaches trying to maintain a bookkeeping software and instead focus on more important tech issues.
Giving Real-Time Financial Reports
During the times when you all meet in person for an annual or monthly report, you’ll have all the financial records available in real time. This can catch discrepancies that ordinarily might not be caught and create issues during tax time. For shareholders, it can also be a gratifying process to see financial details in a real-time mode without looking at a book that shows reports done weeks or months earlier.
Within another few years, you can probably expect bookkeepers to offer cloud accounting as a mainstream service. It’s another move toward the cloud for everything that’s helping eliminate paper trails one piece at a time.